Sign our Petition – State of the Patent System and
Required Legislation

State of the Patent System and Required
Legislation

Our U.S. patent
system no longer encourages investment in new technologies.

Patents are now
liabilities for inventors. Our USPTO discourages the creation of new
technologies by enabling big corporations to crush startups and
inventors.

Congress
must act to stop this damage to our economic engine and the American
Dream.

Eliminate the Patent Trial and Appeals Board
(PTAB)

The PTAB is a
tribunal within the U.S. Patent and Trademark Office (USPTO) that treats
issued patents as a public right, not a property right. PTAB’s
invalidate at least one claim in more than 95% of the ISSUED patents reviewed rendering most patents
valueless for funding at an early stage. Invalidating just one
claim can neuter the enforceability of the entire patent. Big
corporations are filing multiple PTAB procedures on the same patent
driving the cost of defending it into millions of dollars and scaring
investors. The PTAB must be eliminated so patents can attract investment
at early stages.

The abstract
idea exception is creating chaos by failing to define what is or is not
an abstract idea. Today what is patentable is completely in the
eye of the beholder and often different branches of government come to
different conclusions on the validity of the same patent.

Abstract idea
exceptions mean patents have virtually no value in valuations of early
stage startups.

Restore Injunctions and Injunctive Relief

Injunctive
relief was the default judgment for infringement for over 200 years
serving as a strong deterrent to patent infringement, and was the basis
for projecting the future value of a patent at the earliest stages.
Patents are critical to attracting investment to commercialize
technology.

In 2006 a
Supreme Court decision, eBay v. MercExchange effectively
eliminated injunctive relief. Investors cannot project the future value
of a patent, and as a result investment in patents has dropped. With the
most powerful deterrent now removed, “efficient infringement” exists.

End Track I Examination in the USPTO

Track
I examination was created to speed examination in exchange for
additional fees. While marketed as a tool for small entities to
get patent protection faster, most small entities cannot afford the
higher fees. Big corporations can, and are the primary users of
Track I examination.

Return to “First-to-Invent” from
“First-to-File”

First-to-invent
changing into a first-to-file system created the opportunity for
unscrupulous people to steal inventions by filing for patent protection
ahead of the actual inventor. Inventors must now file for patent
protection as soon as possible before disclosing it to anyone to
determine the invention’s viability, marketability or costs. This
adds upfront costs for unproven inventions to the people least able to
afford it. First-to-file is discouraging inventors to the point of
abandoning the patent system.

While we have
damaged our patent system, China has strengthened theirs. Today,
China leads the world in new patent filings. Large amounts of
venture capital that once fueled early stage startups in the U.S. have
moved to China. As a result, startups are fleeing to China.

Congress must act to correct this
damage to allow the U.S. to succeed in the modern innovative world.